REAL ESTATE INVESTMENT 2021
The financial completion guarantee
A long-term insurance
I n order to protect the buyer , the developer is bound to protect himself against his insolvency by means of a completion guarantee . Without this , the signing of the deed of sale at the notary ’ s office cannot take place . This guarantee is part of the VEFA contract .
In other words ...
It is a bank guarantee under which a financial institution undertakes , in the event of the developer ’ s default , to advance the sums required to complete the work .
In addition , the handing over of the keys to the buyer activates various guarantees :
Perfect completion ( 1 year )
Biennial ( 2 years )
This requires the developer to repair all hidden defects and lack of conformity reported during the year following acceptance of the work , regardless of their extent and nature .
This requires the developer to repair or replace , for a period of 2 years after delivery , any item of equipment that does not function correctly .
Decennial ( 10 years )
Optional , it requires the developer to repair any damage that occurs during the 10 years following completion to equipment that cannot be separated from the building and that compromises the durability of the building or makes the property unsuitable for habitation .
52